📈 First-ever Profit
Deliveroo posted its first-ever profit, earning $1.65M in H1 2024. This was a remarkable turnaround from a $105.1M loss during the same period in 2023. The company credits a "positive inflection" in consumer demand for this achievement, with a 2% rise in orders.
💸 Revenue and Growth
The company's revenue climbed by 2% to $1.3B, while gross transaction value increased by 6%, reaching $4.7B. Deliveroo processed 147.4M orders in the first half of 2024, a 2% increase year-over-year, driven by an improved consumer value proposition.
📊 Share Performance
Following the profit announcement, Deliveroo's shares surged by 10% to $1.80. This recovery is notable, though the stock remains significantly below its IPO price of $5.00 from 2021. A £150M share buyback plan was also announced, signaling confidence in future growth.
🔮 CEO's Outlook
CEO Will Shu expressed optimism about the future, despite external uncertainties. He stated, "The Deliveroo platform is more powerful than ever." The company expects its 2024 EBITDA to fall in the upper half of its projected range of £110M to £130M, maintaining its 5%-9% gross transaction value growth target.
Can Deliveroo sustain its profitability?
